Coupang Eats to lower commission fees in April
A delivery rider carries a food order in front of a restaurant in Seoul, Jan. 7. Yonhap
Online food delivery platform Coupang Eats said Tuesday it will lower commission fees for restaurants using its platform in April to ease their financial burdens.
The measure came following an agreement involving the government, the country’s major online food delivery platform operators — Baedal Minjok, Coupang Eats and Yogiyo — and an association of restaurants using those platforms.
Coupang Eats’ new commission rating system is to lower the company’s current rate of 9.8 percent of each order’s sales to at most 7.8 percent and as low as 2 percent. The company applies different rates to its member restaurants by sorting them into four categories based on their monthly sales.
Under the new scheme, for an order of 25,000 won ($17.36), the new system allows restaurants in the bottom three categories to save up to 1,950 won. The company said that restaurants in the bottom 65 percentage of monthly sales will all save cost using the new system.
Coupang Eats said that following the tripartite agreement, it will change its customer receipts to break down the final price in detail to improve price transparency. The updated version now includes the commission fee Coupang Eats charges to the restaurant and how much the delivery costs.
A Coupang Eats official said that the new commission rating system is “to support small business operators and restaurateurs with comparatively low business experience in accordance with the agreement for our mutual growth.”
Baedal Minjok, the largest company in the country’s online food ordering market, plans to update its own commission fee system later this month.